Danaher Corporation (DHR)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	4.15	3.02	3.21	3.54	3.80	4.04	3.90	3.65	4.03	3.80	3.71	3.87	4.16	4.06	4.28	4.34	4.28	3.79	3.37	3.33
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	8.85	7.36	7.26	3.42	4.22	2.50	3.35	3.97	4.20	5.00	5.43	5.91	8.40	7.98	3.12	3.45	3.48	3.14	2.90	7.25

The inventory turnover of Danaher Corporation has shown fluctuations over the years, ranging from 3.33 to 4.28. From March 31, 2020, to December 31, 2024, there was an overall increasing trend in inventory turnover, indicating an improvement in managing and selling inventory efficiently.

The receivables turnover data is not available for the period from March 31, 2020, to December 31, 2024, suggesting that the company did not disclose information on how quickly it collects accounts receivable during those periods.

Similarly, payables turnover data is also not provided for the mentioned time frame, indicating a lack of insight into the company's payment processing efficiency.

The working capital turnover ratio fluctuated between 2.50 and 8.85 from March 31, 2020, to December 31, 2024. The ratio measures how effectively the company utilizes its working capital to generate sales revenue. There was variability in this ratio over the years, which may indicate changes in working capital management efficiency.

Overall, while the inventory turnover showed improvement over time, the lack of information on receivables and payables turnover limits a comprehensive assessment of Danaher Corporation's overall activity ratios. It is essential for investors and stakeholders to have a complete picture of these ratios to evaluate the company's operational effectiveness and financial health comprehensively.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	87.96	120.81	113.80	103.06	96.06	90.35	93.53	100.10	90.65	96.05	98.35	94.39	87.81	89.98	85.37	84.15	85.29	96.42	108.30	109.63
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data for Danaher Corporation, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The DOH indicates the average number of days it takes for the company to sell its inventory.
- Over the period from March 31, 2020, to December 31, 2024, the DOH fluctuated, ranging from 84.15 days to 120.81 days.
- A decreasing trend is observed from March 31, 2021, to December 31, 2022, indicating efficient management of inventory.
- The sudden increase from June 30, 2024, to September 30, 2024 might suggest challenges in inventory management.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the data for DSO is not provided, making it challenging to assess the efficiency of the company in collecting receivables.
- Typically, a lower DSO is preferred as it signifies quicker collection of outstanding payments.

3. Number of Days of Payables:
- Similar to DSO, the information on the number of days of payables is missing, making it difficult to analyze how long the company takes to pay its suppliers.
- A longer period of payables can indicate better cash flow management but may also signal strained relationships with suppliers.

In conclusion, while the inventory turnover trend shows fluctuations, the missing data on DSO and payables hinders a comprehensive analysis of Danaher Corporation's overall activity ratios. Further data on sales outstanding and payables would provide a more comprehensive understanding of the company's working capital management and efficiency.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	—	—	—	—	—	5.58	7.27	7.61	7.96	8.40	8.12	7.94	7.77	7.71	6.10	7.59	6.83	6.68	6.57	6.49
Total asset turnover	0.31	0.25	0.27	0.27	0.28	0.34	0.36	0.36	0.37	0.39	0.38	0.36	0.35	0.34	0.34	0.33	0.29	0.28	0.27	0.28

The fixed asset turnover ratio for Danaher Corporation has shown an increasing trend from March 31, 2020, to September 30, 2022, indicating the company is generating more revenue per dollar of fixed assets over the years. However, the ratio experienced a decline from September 30, 2022, reaching its lowest point at December 31, 2023. This decline could signal inefficiencies in utilizing fixed assets during this period. Notably, the ratio remained constant for the last four periods, suggesting a stabilization in the company's fixed asset utilization.

On the other hand, the total asset turnover ratio demonstrates a fluctuating trend over the same period. The ratio initially showed a slight increase up to December 31, 2021, indicating an improvement in generating sales relative to total assets. However, from March 31, 2022, to December 31, 2024, there was a decline in the ratio, suggesting a decrease in sales generated from the company's total assets.

Overall, the fixed asset turnover ratio indicates a more consistent performance compared to the total asset turnover ratio over the specified period. This implies that the company may have been more efficient in generating revenue from its fixed assets rather than its total assets.